By FRAN O'SULLIVAN
The Australian Productivity Commission has ruled out "radical reform" of competition laws on both sides of the Tasman as a necessary move towards establishing a single economic market.
Radical solutions, such as identical laws and a single Australasian regulator, would have high implementation costs, require changes to existing national
regimes and deliver only modest benefits, said a draft report by the commission.
The report, Australian and New Zealand Competition and Consumer Protection Regimes, finds the New Zealand and Australian regimes are already well harmonised, particularly by international standards.
"Radical change would not be worthwhile given the small benefits such changes would deliver," said commissioner Tony Hinton.
The commission instead suggests regulators should be given the ability to use their investigative powers to assist their counterparts across the Tasman.
They should also be able to share information with safeguards built into each country's regime to ensure confidential information remained protected from unauthorised disclosure.
The commission's draft finding is a setback to proponents of a transtasman single market linked by a common border and rules. They point to a NZ Institute of Economic Research report which last year assessed the benefits of moving from CER (Close Economic Relations) to a "borderless" Australasian market at between $256 million and $576 million on a "conservative basis".
But Hinton stressed the recommended changes would be consistent with the current policy of pursuing harmonisation and "building a foundation" for the goal of establishing a single economic market.
It basically reflects the views and substantive points raised in 27 public submissions.
Commerce Minister Margaret Wilson noted the report focused on areas where the competition and consumer protection regimes materially impeded development of a single economic market.
"In terms of competition issues, the commission has proposed a number of diverse options for reform.
"These range from having one Australasian test to address competition issues to maintaining two separate competition authorities with enhanced co-operation."
She declined to comment further until the final report is published in December.
The draft report results from a research study by the commission, announced by Wilson and Australian Treasurer Peter Costello in June.
The commission will hold roundtable discussions on the draft report in Auckland on November 4 and in Wellington on November 5. Written submissions close on November 19.
The final report will not be binding on either government.
Single economic market
OUT
Radical reforms.
Common competition rules.
Single Australasian regulator.
IN
Transtasman co-operation.
Investigations, information-sharing.
Co-operation on enforcement.
